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The Schwarzenegger administration plans to send 20,000 layoff notices to those state workers with the least seniority. The Governor's Press Secretary, Aaron McLear says the goal is to eliminate10,000. He says some workers might not lose their jobs - but might instead be transferred. McLear says the layoffs would save $750 million annually.

McLear:
"So, in the absence of any kind of solution to our 42 billion dollar hole, the Governor has the responsibility to act in any way that he has the power to act, to chip away at that 42 billion as much as possible."

McLear says the Governor won't send the layoff notices if a budget deal is reached that achieves similar savings before then. Workers won't be laid off right away. McLear says the layoff process can take four to six months. Legislative leaders and the Governor continue to work on a deal to balance the state's budget.